Analyzing Coeur Mining (NYSE:CDE) and First Majestic Silver Corp. (AG)

First Majestic Silver Corp. (NYSE: AG) and Coeur Mining (NYSE:CDE) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitabiliy, analyst recommendations, risk, valuation and dividends.

Institutional and Insider Ownership

26.5% of First Majestic Silver Corp. shares are held by institutional investors. Comparatively, 68.1% of Coeur Mining shares are held by institutional investors. 0.9% of First Majestic Silver Corp. shares are held by insiders. Comparatively, 1.3% of Coeur Mining shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares First Majestic Silver Corp. and Coeur Mining’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
First Majestic Silver Corp.	$280.67 million	3.58	$105.85 million	$0.09	67.67
Coeur Mining	$714.88 million	1.94	$187.25 million	$0.43	17.77

Coeur Mining has higher revenue and earnings than First Majestic Silver Corp.. Coeur Mining is trading at a lower price-to-earnings ratio than First Majestic Silver Corp., indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

First Majestic Silver Corp. has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Coeur Mining has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares First Majestic Silver Corp. and Coeur Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Majestic Silver Corp.	5.11%	1.60%	1.18%
Coeur Mining	9.65%	10.44%	5.71%

Analyst Ratings

This is a summary of current ratings and recommmendations for First Majestic Silver Corp. and Coeur Mining, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Majestic Silver Corp.	0	6	2	0	2.25
Coeur Mining	0	3	5	0	2.63

First Majestic Silver Corp. presently has a consensus target price of $15.25, suggesting a potential upside of 150.41%. Coeur Mining has a consensus target price of $11.79, suggesting a potential upside of 54.34%. Given First Majestic Silver Corp.’s higher probable upside, research analysts plainly believe First Majestic Silver Corp. is more favorable than Coeur Mining.

Summary

Coeur Mining beats First Majestic Silver Corp. on 11 of the 14 factors compared between the two stocks.

About First Majestic Silver Corp.

First Majestic Silver Corp. is a mining company. The Company is focused on silver production in Mexico and it is pursuing the development of its existing mineral property assets. The Company operates through eight segments, six of which are located in Mexico; one retail market segment in Canada, and one metal trading segment in Europe. Its segments in Mexico are Santa Elena, La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra. Its segment in Canada is Coins and Bullion Sales, and the segment in Europe is Silver Sales. The Company owns and operates approximately six producing silver mines: the La Encantada Silver Mine, La Parrilla Silver Mine, Del Toro Silver Mine, San Martin Silver Mine, La Guitarra Silver Mine and Santa Elena Silver Mine. The Company’s subsidiaries include First Majestic Plata, S.A. de C.V., Minera El Pilon, S.A. de C.V., Minera La Encantada, S.A. de C.V., Majestic Services, S.A. de C.V., Santa Elena Oro y Plata, S.A. de C.V. and FMS Trading AG.

About Coeur Mining

Coeur Mining, Inc. is a gold and silver producer. The Company has its mines located in the United States, Mexico, and Bolivia and exploration projects in Mexico and Argentina. Its segments include Palmarejo, Rochester, Kensington, Wharf, San Bartolome mines, Coeur Capital and Other. The Palmarejo complex is located in the state of Chihuahua, Mexico. The Rochester mine is located in Pershing County, Nevada, approximately 13 miles northeast of the city of Lovelock. The Kensington underground gold mine and associated milling facilities are located on the east side of the Lynn Canal over 45 miles north-northwest of Juneau, Alaska. The Wharf mine is located in the northern Black Hills of western South Dakota. The San Bartolome silver mine is located on the flanks of the Cerro Rico Mountain bordering the town of Potosi, in the department of Potosi, Bolivia. Coeur Capital segment consists of the Endeavor silver stream. The Other segment includes the La Preciosa project and Joaquin project.